Despite the threat to growth, stock market reaction around the world was muted. But the U.S. dollar stumbled 0.4% against a basket of global currencies and fell to its lowest level against the euro for seven months.

The Australia ASX All Ordinaries swung between gains and losses all day, ending down 0.2%. Tokyo's Nikkei closed up 0.2% while India's Sensex added 0.6% after the country's current account deficit widened less than expected. Exchanges in Hong Kong and China were closed for a holiday.

In Japan, the focus was on a tax hike and the quarterly Tankan survey, which showed business confidence at its highest level in years.

Markets in Korea and Taiwan were also supported by strong expansion of factory activity, according to a survey by HSBC. Korea's September purchasing managers' index rose to a four-month high of 49.7, while Taiwan's September PMI surged to an 18-month high of 52. China's official PMI climbed to 51.1 in September.